Gold, Silver Prices Fall As Fed Rate Hike Expectations Weigh On Bullion

Gold and silver prices opened markedly lower on Wednesday as concerns over a potential US Federal Reserve rate increase weighed on investor sentiment.

On the Multi Commodity Exchange (MCX), gold futures for August delivery declined 1.51 per cent to Rs 1,50,140 per 10 grams during intraday trade at 12:15 PM. Silver futures for July delivery also retreated nearly 1 per cent to Rs 2,36,239 per kilogram.

According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at Rs 1,48,429 per 10 grams, down from Rs 1,52,519 recorded at the previous session’s opening.

International markets mirrored the weakness. Spot gold slipped 1.8 per cent to $4,187.59 per ounce, touching its lowest level in eleven weeks. US gold futures for August delivery eased to $4,213.40 per ounce.

Analysts attributed the decline to a stronger US dollar and elevated crude oil prices following renewed hostilities in the Middle East.

These developments intensified inflation concerns and reinforced expectations that the Federal Reserve may maintain a tighter monetary stance for a longer period.

As the dollar strengthened, gold priced in the greenback became costlier for buyers using other currencies.

The CME FedWatch tool indicated that traders were assigning more than a 70 per cent probability to a US rate hike by December.

For MCX gold, analysts identified Rs 1,52,000 as the immediate resistance level.

A sustained move above this zone could support a recovery towards Rs 1,54,000–Rs 1,55,000.

Market participants maintained a cautious outlook due to geopolitical risks and broader financial market volatility.

MCX silver continued to hold above the crucial Rs 2,34,000–Rs 2,32,000 support band.

Analysts placed immediate resistance between Rs 2,38,000 and Rs 2,40,000. They cautioned that a decisive breach below Rs 2,32,000 could trigger stronger selling pressure.